As the United States approaches its 250th anniversary, many Americans are thinking about the country’s history and the values it was built on. Opportunity and progress have always been at the center of the American story. One of the key drivers of opportunity and progress is something most of us don’t think about until the bill arrives each month: electricity.
America’s electric companies know how essential energy is to daily life. It powers our homes, our schools, our churches, and our small businesses. It keeps food cold in our refrigerators and allows children to do homework at night. For families working hard to make ends meet, the cost of keeping the lights on matters.
A recent independent analysis by Charles River Associates offers some useful perspective by looking at electricity prices across the country over the past five years. The study found that, on average, retail electricity rates have risen at about the same pace as inflation. In other words, electricity prices have generally kept up with the overall cost of living. In fact, for roughly the cost of a box of cereal a day, the average American family powers all the connective devices and appliances that they have in their home.
The report also found that electricity rates have remained fairly stable in most states. In places where costs have risen more sharply, increases were usually tied to local variables, not nationwide trends. Factors such as regional energy markets, wildfire risk prevention, and state policies such as net metering often explain why prices move differently from one state to another.
Additionally, state regulators help decide how electric companies invest in power plants, transmission lines, and new technologies. They also oversee how those costs are passed on to customers. Good policy decisions can help keep energy reliable while also encouraging innovation that lowers costs and helps improve environmental outcomes for communities.
That doesn’t mean energy affordability isn’t a concern. For many households, we know even small increases in costs for healthcare, housing, groceries, or energy can strain tight budgets. Electricity isn’t something families can simply cut out when times are tough.
In many African American communities, in particular, the question of energy affordability is tied to a larger conversation about economic opportunity. For generations, Black families have worked to build stable homes, businesses, and communities despite facing economic barriers. Lower-income households also tend to spend a larger share of their income on energy costs, which makes electricity prices especially important.
As our country prepares to celebrate 250 years of independence, making sure energy remains reliable and as affordable as possible is critical to keeping opportunity within reach for everyone.
The federal government has an important role in making sure the nation’s energy infrastructure can keep up with demand. The United States is using more electricity than ever before due to expanded domestic industrialization and manufacturing, electrification, and new technologies.
Building and upgrading energy infrastructure to increase reliability and meet this new demand takes time. One of the challenges often discussed in energy policy is the long and complicated process required to approve major projects like power plants and transmission lines. Permitting and siting reforms at the federal level could help speed up these projects while still protecting communities and the environment. When infrastructure projects are delayed for years, costs increase measurably. A more efficient approval process could help bring new energy resources online faster, which can create new jobs, improve reliability, and support efforts to keep customer bills as low as possible over time.
Another piece of the affordability puzzle is energy efficiency. Sometimes the most effective way to lower a family’s electricity bill is to help them use less energy. Electric company programs that help homeowners improve insulation, upgrade appliances, or install more efficient heating and cooling systems can make a noticeable difference. These improvements reduce energy waste and help families manage their monthly expenses.=
Community programs also play an important role. America’s electric companies and many local organizations offer assistance programs for households that are struggling to pay their energy bills. These programs help families stay connected to essential services while they work toward financial stability.
The broad lesson from the Charles River Associates study is that energy affordability is a complex issue, and solutions need to be thoughtful, balanced, and tailored to regions and states. The goal should be an energy system that is reliable, modern, and affordable for the people who depend on it every day. Achieving that balance requires cooperation among policymakers, electric companies, community leaders, and customers.
America’s 250th anniversary is an opportunity to think about how the country can continue to expand opportunity for future generations. Access to affordable and reliable energy is part of that vision. It supports education, entrepreneurship, and economic growth in communities across the country. For African American families and communities that have long fought for equal access to opportunity, ensuring energy remains as affordable as possible is one more step toward strengthening that promise.
In 1776, America’s founders imagined a nation built on the idea that people could shape their own future. Today, our effort to keep energy accessible and as affordable as possible helps ensure families still have the power, quite literally, to build better lives. As the nation reflects on its past and looks toward the future, making wise decisions about energy policy can help power the energy of every day and ensure the promise of America continues for the next 250 years.